The endowment manager of the Barnstable College is assessing applications to improve the grant’s contact with the stocks. This proposal is based on the analysis that if stocks are kept for longer durations, it would be much safer.
a)Comparison of Shortfall Method with VAR Model
b)Empirical Analysis on Shortfall Method
3- What are the side effects of using Shortfall?
a)Net cost to the Sponsor of fund